The Taiwan Financial Services Commission published its May 2025 statistics on the insurance industry’s profit and loss, owners’ equity and foreign-exchange impacts, showing the sector at a pre-tax loss of TWD 49.5 billion at end-May, led by a sharp deterioration in life insurers’ results alongside material foreign-exchange effects. Life insurance enterprises recorded a pre-tax loss of TWD 61.7 billion, down TWD 225.7 billion (137.6%) from a year earlier, while non-life insurers posted pre-tax profit of TWD 12.2 billion, down TWD 0.3 billion (2.4%). Owners’ equity for the industry stood at TWD 2,185.7 billion, with life insurers at TWD 2,034.5 billion (down TWD 440.7 billion or 17.8% year on year) and non-life insurers at TWD 151.2 billion (up TWD 14.0 billion or 10.2%). The Taiwan dollar appreciated 9.53% against the USD since end-2024, and life insurers’ cumulative foreign exchange valuation reserve was TWD 18.8 billion, down TWD 200.8 billion, including a one-time reserve of TWD 63.9 billion under a new mechanism; the combined impact of exchange and hedging gains/losses and volatility effects on the reserve was TWD -263.8 billion, while overseas investments generated a net loss of TWD 138.4 billion excluding the volatility effect on the reserve.
Taiwan Financial Services Commission 2025-06-26
Taiwan Financial Services Commission reports May 2025 insurance sector pre-tax loss of TWD 49.5bn and TWD 263.8bn FX-related drag on life insurers
The Taiwan Financial Services Commission reported a pre-tax loss of TWD 49.5 billion for the insurance sector as of May 2025, due to a decline in life insurers' performance and foreign-exchange impacts. Life insurers faced a pre-tax loss of TWD 61.7 billion, while non-life insurers had a pre-tax profit of TWD 12.2 billion. The Taiwan dollar's appreciation and foreign exchange valuation reserve adjustments led to a TWD 263.8 billion negative impact on reserves, with overseas investments incurring a net loss of TWD 138.4 billion.